Surge of activity could see Victoria playing mine host

Victoria could soon boast a new commercial iron ore mine amid a surge of mining activity.

A combination of increased mineral prices and a supportive state government is driving a rejuvenated local mining sector with hot interest in exploration licences.

This week Eastern Iron advised the stock exchange it had moved into the environmental approvals phase for a commercial iron ore mine at Nowa Nowa, 30 kilometres from Lakes Entrance.

An open-pit goldmine was also approved this week south of Maryborough, in central Victoria, and in September, Melbourne will host an international mining conference.

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The proposed East Gippsland iron ore mine would be in the Tara State Forest, and would include a 25-hectare open pit.

The mine would have a span of about 10 years and produce about 1 million tonnes of iron ore a year to be exported from near Eden.

Eastern Iron's managing director, Greg De Ross, said he did not believe there were environmental reasons to prevent the mine, and said the area had already been heavily logged.

''It is certainly not pristine wilderness,'' he said. ''There are no show-stoppers from an environmental perspective.''

Also this week, Octagonal Resources reported it had received approval for the Pearl Croydon open-pit goldmine at Amherst, in central Victoria, with work to begin next month. The site is estimated to have 53,000 ounces of gold, with a mine value of up to $20 million. Jason Mills, of Octagonal Resources, said mining was becoming more attractive in Victoria. ''I think the big thing is the government has streamlined some of their processes,'' he said. ''They have said they are open for business.''

The Victorian executive director of the Minerals Council, Megan Davison, said Victoria had not realised the potential of the resources it had. She said modernising legislation and regulation was encouraging more movement from the exploration phase to the feasibility phase of mining in Victoria.

Not all are excited about a mining renaissance. Mark Wakeham, campaigns director with Environment Victoria, said he was concerned about the rush to mining in Victoria. ''It doesn't appear that any areas are off limits. There seems to be a real development-at-all-cost mentality.''

He said the state government had ''minerals envy'' of such states Western Australia and Queensland, and increasing mining would come at the expense of landholders and industries.

A government spokeswoman said the government had a plan to deliver a strong and responsible earth resources industry that created jobs and investment.

''Our vision is for an industry that delivers benefits to all Victorians while respecting the rights of landholders, protecting the environment and working co-operatively with other important industries, like agriculture,'' she said.

Jason Dowling has been a reporter at The Age for more than a decade. After breaking a significant number of stories for The Sunday Age as state political reporter, Jason was appointed City Editor for The Age. Jason has rotated through various areas of the paper including sport, business and general reporting.